Many individuals live with their roommates. But if you are a vehicle owner, it may feel confusing to ascertain whether your car insurance can be of use to your roommate. Auto insurers desire to learn about everyone who can drive your vehicle. It helps them evaluate the risk correctly. So, can roommates share car insurance? The answer is yes. Most insurers permit this sharing to happen.
Adding another being to your insurance will increase the price of your policy. But the price will still be lesser than the total amount of two individual insurance policies. Keep reading and learn more about sharing car insurance with your roommates.
Can Roommates Share Car Insurance – Key Things to Know
- Specific auto insurance companies demand that individuals with the same address get added to the policy. They get added as an excluded vehicle driver.
- The insurance rate will go up if your roommate has a poor credit score.
- If you are concerned about the driving profile of your roommate increasing the premium, exclude them from the policy.
- If you are certain that your roommate will not use your vehicle, do not add them to the policy.
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Should Your Roommate Be a Part of Your Car Insurance?
You must add your roommate as a driver on your policy if they can access your car and keys. This can be anyone, such as your relative, friend, or even stranger, renting a specific room at your home.
Many insurance agencies need you to add drivers in the home to the policy to evaluate risk. As your roommate can drive your vehicle, insurers will consider that in your policy rates.
Once the car insurance company knows about your household members, it is up to their guidelines to decide if the renter will have to list on your insurance or not. If you exclude a person from your policy because they do not drive your car, you’ll not pay for them as a driver. In turn, your insurance agency won’t impart any coverage to them whenever they drive your vehicle.
It further implies that if an emergency occurs and a renter uses your car and gets into an accident, the insurance policy will not cover this accident.
The Process to Add Your Roommate to Your Car Insurance
You can add any driver living in the same location to your car insurance policy. This is what most policies allow. However, it is still important to speak with your agent regarding your options. In order to add the other person to your vehicle insurance, add them as a secondary driver to your car insurance policy.
- To do so, call your insurance provider and give them relevant details on your roommate.
- You will need to supply them with data such as their name, birth date, and driver’s license number.
- Also, have an answer to whether the person you are adding to your policy possesses any traffic tickets.
- Remember to enquire about discounts after you add your roommate to your policy. It is possible that you qualify for discounts, such as a safe driver discount, if your roommate meets those qualifications.
- After adding your roommate to your policy, always communicate about who is paying for it. Tell them clearly about how you want them to treat your car when they drive it.
It is critical to answer all the questions asked honestly. After noting your answers, the company will conduct a check on its own. If they find any unreported tickets, you and your roommate can face many negative consequences. This includes a greater premium or your roommate being rejected to be a part of the policy.
Benefits of Adding Your Roommate to Your Car Insurance
There are several advantages of adding a roommate to the car insurance. These include the following:
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1. Your car and your roommate are fully insured for any accident
This is the main benefit that comes from adding your roommate to your car insurance. This coverage ensures that if you or your roommate experiences an unforeseen event, the car and your life are insured.
So, you must tell the insurer about the person who can access and drive your vehicle. It means all the licensed drivers in your home who can use your car every day, weekly, or monthly.
If you don’t add an occasional driver to your coverage, it can lead to your claim being denied. This happens because you did not report how your car was being employed to your insurer. So, to keep yourself, your vehicle, and your roommate insured, add them to the insurance policy.
2. More flexibility
Additional flexibility is another advantage of adding your roommate to your policy. Adding them means your vehicles can be shared. So, if your vehicle breaks down and you desire to desire to borrow your roommate’s car for some time, it won’t be difficult. You know that you will have coverage if an accident covers you.
On the other hand, if you are an excluded driver, you will not get the benefit of the coverage. Consequently, you cannot drive their car. This minimizes the flexibility that can other be experienced.
3. Leverage various discounts
Adding roommates to your policy also gives you the benefits of various car insurance discounts. When your roommate and their vehicle get added to your policy, you can avail of multi-driver and multi-car discounts.
Although it may increase your policy’s premium, it will be cheaper than people covering their car on individual policies. You will notice much savings when you have numerous policies. For example, a renter can save up to $1,760 with an average annual premium. A homeowner can save up to $1,728 with such a premium. If you are a homeowner with a multi-policy, you can save around $1,562 through an average annual premium.
Concluding Words
The rules for sharing car insurance with roommates are not complicated at all. You must tell your roommate if they can access your vehicle and drive it occasionally or regularly. Talk to your car insurance company to learn more about it.
